India is a land of varied cultures and festivals and it has been seen over years that the majority of Indians shop during and around festivals. This festival economy is growing rapidly and opening gates for more and more businesses to enter the retail market, both online and offline. Below statistics from ASSOCHAM provide an insight on buying behaviors and shopping spree of Indians during festivals.
Further ahead in this discussion, the insights are drawn on the offline and online share of the festival economy. While the sales graph has a peak at almost all major festivals in India, it is mostly offline sales, except the months of October to December, which is majorly the Diwali sale period. As we have already discussed, the major products sold during Diwali are electronics, apparels, and automobiles and except the latter, all products are increasingly being bought online.
With internet access made available in tier II and tier III cities as well, the share of online sales has gone up! An increasing customer base and an expanding product portfolio help e-commerce companies to cater to different demographic groups. The discounts and promotions that are run during Diwali sale are breaking sales records each year and are believed to do the same in coming years as well.
To build an intelligent festive sale strategy
E-commerce companies, all big and small, plan their growth around these festive sales. This is the time when the magic of data comes into play.
The festivals bring joy to e-commerce businesses in terms of hiked sales numbers and growth rate. The big e-commerce companies plan their yearly numbers around holiday sales and compete with all their vigor and strength to perform better than the other. This gives rise to annual battle between two e-commerce giants between Flipkart and Amazon, where Flipkart emerged victorious with a sales figure of Rs. 5000 crore as compared to Rs. 2500-2700 cr. of Amazon within a 5 days Diwali sales period!